Is Gatorade a write-off?

Discussion in 'Business Operations' started by lawnspecialties, Jul 15, 2006.

  1. lawnspecialties

    lawnspecialties LawnSite Silver Member
    Messages: 2,522

    I'm reading the other thread about someone wanting to write off food and it reminded me of a similar question I thought of the other day. What about Gatorade and ice for the cooler? Now mind you, I'm a solo LCO but when it's 95 plus outside, you can put some drinks away in a hurry. Let's say the local grocery store has a real good sale, could I buy a ton of drinks and maybe several bags of ice (put them in the freezer) to use on the job? I would imagine if I had a crew, it would be more substantiated, but since I'm by myself, would the IRS just say "tough"? Thanks....
  2. StBalor

    StBalor LawnSite Senior Member
    Messages: 798

    I just asked my accountant this on thursday. She said it is a write off because i must supply my employees with something to drink. However, i have employees, so not sure about solo.
  3. Team-Green L&L

    Team-Green L&L LawnSite Bronze Member
    Messages: 1,775

    This sounds dumb, but Gatorade IS a write-off, as is: your printer ink, any computer upgrades, software, internet and phone services, boots, Dickies, paper towels, T-Shirts, ect. If you use it PRIMARILY for business purposes a good CPA can write it off.
  4. lawnspecialties

    lawnspecialties LawnSite Silver Member
    Messages: 2,522

    That's what I thought. I'm calling him this week. Thanks Team Green
  5. topsites

    topsites LawnSite Fanatic
    Messages: 21,653

    Shoot, once you have enough 32-ounce bottles that you stuck in the freezer, buy the powder version of Gatorade and re-fill those 32oz bottles, it's way cheaper.

    Then you win double lol.

    p.s.: I really wish Gatorade would give discounts for bulk purchases (say a box of 48 or so powdered containers), but they won't do it.
    p.s.s.: Yes, I tried, years ago. 1.800.88.GATOR :laugh:
  6. Howard Roark

    Howard Roark LawnSite Senior Member
    from Texas
    Messages: 805

    My cousin is a tax professor in Boston. I asked her this same question last year, because basically I told her here in Texas if you don't drink gatorade or something of the like when doing lawn care, you'll die. And I was spending so much on it that I honestly felt it should be deducted. Here, water is NOT enough.

    Her response is textbook and is good reason why I don't use her to do my taxes.... :nono:

    "Writing it off will not hold up in an audit because the IRS considers this something you would be drinking anyway, sort of like eating lunch. However, if you were buying it for your crew then you can take the deduction."

    So, solo no, crew yes.

    Hope this helps.
  7. DBL

    DBL LawnSite Silver Member
    Messages: 2,219

    but being solo means you are the solo employee so you are buying it for you the employee of your company to drink so it should be a write off for both
  8. Howard Roark

    Howard Roark LawnSite Senior Member
    from Texas
    Messages: 805


    Tell it to the IRS.
  9. PastyWhite

    PastyWhite LawnSite Member
    from Jax, FL
    Messages: 56

    I work with a partner. We have a corporation. Each of us owns 50% of the stock in the corp. Technically there are no employees b/c we are both on the board. Can we write drinks off? There are no employees according to the govt but we are not a solo operation either.
  10. Howard Roark

    Howard Roark LawnSite Senior Member
    from Texas
    Messages: 805

    Grey areas are not my specialty, it's your choice. :laugh:

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